Who sets LPG price?

LPG is "natural gas", and is in no way related to oil or Petrol however it is drilled/ mined by the same very friendly oil companies. I.E In Australia Woodside, Mobil Exon I believe.

As far as I know its price has nothing to do with the price of crude oil, but like oil need’s refining and its price depends on supply and demand witch at the moment is rather high also refining cost and let’s not forget government TAX

I don't think lpg is a by product of the petrol refining process.Isn't it a by-product from the gas fields? Isn't the big flame at moomba excess lpg? I am pretty sure that we supply a big piece of the lpg pie the world uses. Price is supply and demand.....if overseas will pay more for it so do we. No doubt my ideas will be blown out of the water by someone in the know lol

here is the answer

for your question the answer is yes and yes. Bend over BP got a rough end of a pineapple for you.

shadow

im led to believe that LPG is mostly a bi-product of producing fuel from crude oil. It is called a top end product and is a combination of mostly Butane and Propane and burns of at the top of cracking towers. Our vehicle fuel is also a combination of Butane and Propane, hopefully when you fill up you mostly get Propane and not much Butane, Propane boils at -46'C where Butane only boils at 0'C (Propane produces more Combustion) "explains the power and Klm's difference between tanks). I'm not sure who sets the pricing of LPG however I have been told that we sell it to Korea out of Williamstown Docks for as little as 5 cents/lt as they have various ships going back and forth to supply their countries industry fuel requirements. If your starting to worry about the pricing then you should be as the Federal goverment has roped it into a nice little extra tax bracket with Diesel and this has something to do with the Kyoto Agreement.
Strange isn't it, its a cleaner and friendlier fuel compared to petrol and diesel yet yet the users are going to be ripped off!!!! I run a Diesel so I bent over age's ago!!
I hope this helps Blackie0070

'Petroleum' is a continuum, going from methane (dry gas) to heavy crude oil.

Liquid petroleum is easy to transport - tankers, trucks, pipelines, etc etc. This makes it easy to sell on the spot.

Gas is more difficult to transport - only really pipelines, & tankers or cylinders after some processing. Hence it is usually sold on a contract basis.

LPG is a little heavier than straight methane, but still comes in the realm of 'gas' - 'Wet gas' or very light oil is processed to give the standard fuel value, and the product is cooled, and transported as a VERY cold liquid... Hence the name Liquid Petroleum Gas.

Because it is derived from projects developed for gas more than oil, prices are decided by contract. Australia having a small population compared to China, there is less economy of scale, and less bargaining power.

Having said that, when crude oil prices go up, distributors know they can get away with charging more for LPG as well as petrol and diesel. The government have some effect, in terms of tax regime, but thats about it.

Thank you every one for taking the time, I realise that it won't stop us from getting screwed, at least now we know by who!

Avagoodn
Pezza

I read somewhere not long ago that the LPG from the west aussie coast is being sold to China for around 3 cents a litre. Dunno where I saw this so I can't justify it's credability.

I have been told that LPG goes to full parady in 2010 and we can expect a price increase.
If this the case we should start to lobby now to keep the price down and ask why we cannt buy it closer to the export price plus local handling
cheers